Choosing to buy lab grown diamonds and natural diamonds may seem somewhat confusing, since the two are indistinguishable to the naked eye, but their distinctions span price, market share, sustainability, ethical considerations, and investment value. While their chemical and atomic structures are identical, the journey from their origins to the jewellery market sets them apart in significant ways.
The Clear Winner On Price
Lab-grown diamonds dominate when it comes to affordability. These synthetics cost anywhere between 30% and 75% less than naturally mined diamonds, despite being virtually identical in quality and structure. The key lies in their production: lab-grown diamonds can be created in as little as four weeks without the extensive mining operations required for natural diamonds, which are formed over billions of years. Mining involves significant costs, from exploration to extraction, driving up the price of natural stones. By contrast, lab-grown diamonds leverage streamlined manufacturing processes, allowing them to deliver exceptional quality at a fraction of the cost.
Market Share & Rapid Growth
Since 2018, lab-grown diamonds have steadily increased their market share, rising from 3.5% to nearly 19% by 2023. This growth reflects shifting consumer preferences, particularly among younger buyers who value affordability and environmental consciousness. Millennials and Gen Z often choose lab-grown stones for their engagement rings, not only because they can afford larger, more impressive diamonds, but also due to the eco-friendly narrative attached to lab-grown production. The ability to flaunt “bigger rocks” at a lower price has cemented lab grown diamonds as a trendy and socially responsible alternative.
Investment Potential vs The Natural Edge
While lab-grown diamonds excel in price and market share, they falter as an investment. Their future value remains uncertain, largely due to the ease with which they can be produced and the ongoing price drops at the wholesale level. Natural diamonds, however, retain their status as a store of value, often appreciating over time, much like precious metals. For investors, the rarity and timeless appeal of natural diamonds make them a more reliable option, despite their higher upfront costs.
Sustainability and Ethics: Lab-Grown Leads the Way
Environmental and ethical considerations heavily favour lab-grown diamonds. The mining of natural diamonds has long been criticised for its environmental toll and association with unethical practices in some regions. Lab-grown diamonds sidestep these issues entirely, offering a more sustainable and ethically sound alternative. Some producers have even adopted renewable energy in their manufacturing processes, further appealing to environmentally conscious consumers.
Consumer Appeal & Perfect Substitution
Lab-grown diamonds are indistinguishable from natural diamonds without specialised equipment, making them the ideal substitute for budget-conscious buyers. With identical physical, chemical, and optical properties, lab-grown diamonds offer consumers the chance to enjoy the same sparkle and prestige at a much lower cost. For many, the only discernible difference is their origin—a laboratory rather than the earth—and for most buyers, this distinction carries little weight compared to the cost savings.
Two Sides of the Same Coin
Lab-grown diamonds are increasingly viewed as the ideal alternative to natural diamonds, offering unbeatable value, sustainability, and appeal to a new generation of consumers. However, natural diamonds maintain their dominance in the investment sphere, driven by their rarity and enduring value. For now, both options coexist as two sides of the same coin, each catering to distinct consumer needs and priorities.